The Trumps are dropping all litigation against an ad hoc committee of creditors, plan to release the debtors from claims of more than $100 million and will permit the continued use of Donald Trump’s name on the three Atlantic City casinos, according to the statement. He said his competing reorganization plan was becoming “mired in highly expensive and distracting litigation” in dropping his resistance.
I did not think Donald Trump would give up on the battle for the casinos. Trump He only owned 29% of the company to begin with and must have deemed their value to not be worth the legal battle. I figured he would follow Carl Icahn into the bargain hunting for the casinos.
I don’t think this will change anything in the short term and I’m curious to see how the lenders get out of bankruptcy now that this distraction is gone.